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Unformatted text preview: 1. On January 1, 2010, P Corporation purchased 75% of S Corporation for $500,000. S’s stockholders’ equity on that date was equal to $600,000 shares of previously unissued stock on December 31, 2010. Assume S sold the 8,000 shares to outside interests, P’s percent ownership would be: (Points : 10) 56 1/4% 62 1/2% 75% 79 1/6% 2. When the parent company sells a portion of its investment in a subsidiary, the workpaper entry to adjust for the current year’s income sold to noncontrolling stockholders includes a (Points : 10) debit to Subsidiary Income Sold. debit to Equity in Subsidiary Income. credit to Equity in Subsidiary Income. credit to Subsidiary Income Sold. 3. The purchase by a subsidiary of some of its shares from noncontrolling stockholders results in the parent company’s...
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- Spring '09
- Dooley Corporation, Subsidiary Income. credit